BitMEX founder Arthur Hayes tweeted on Wednesday that he is the largest holder of LOOKS tokens, as he currently holds about 17 million tokens (worth about $5.14 million). Hayes’s token holding is interesting and has drawn the attention of the community.
LOOKS is the native, fungible token of the LooksRare protocol, the community-focused NFT marketplace that actively rewards creators and traders for participating. 100% of LooksRare’s platform trading fees are earned through the staking of LOOKS tokens.
Users earn tokens by staking the coins (which also earns WETH rewards) and trading NFTs on LooksRare, among others.
Why Hayes Prefers Investing In LOOKS Tokens
According to data from Coinmarketcap, the token has a total supply of 469,539,052 coins. With 17 million tokens in his portfolio, Hayes holds 3.62% of the total supply. This qualifies him as the biggest holder of LOOKS tokens and the largest holding wallet within the digital asset’s network.
Hayes identified LooksRare NFT platform revenue and its potential to outperform Treasury bond yields as the key reason for investing in the token.
Hayes regards LooksRare, which aims to be an alternative to OpenSea, as a potential NFT platform that offers great rewards to users.
While OpenSea is 100 times bigger than LooksRare, the largest NFT marketplace does not have a token that offers rewards through staking and inflationary minting. This is where LooksRare comes in by offering the rewards emission, which the former BitMEX CEO takes advantage of to fulfill his 20% investment goal.
Hayes disclosed that he believes metaverse and NFT businesses are experiencing a 98% fall from their all-time highs because they are in their first trading market cycle. He acknowledged that although the token is an undervalued altcoin, it has a strong utility and bullish potential in the bear market.
The co-founder and former CEO of BitMEX believes LooksRare, a decentralized, community-first NFT marketplace that offers users rewards for participating on the platform, could offer 2x-to-3x earnings to its users. Though the volatility is higher in cryptocurrencies and NFTs, Hayes believes tokens such as LOOKS are options suitable for addressing future uncertainties and hold high intrinsic value.
The price-to-earnings ratio (the P/E ratio) is a quick method to see if shares are overvalued or undervalued. The lower the P/E ratio, the better for potential investors. According to Hayes, the P/E ratio for LOOKS is relatively low, which ranges between 0.9x and circa 3.3x, and this thus presents good value for investors. The long-term average P/E ratio for the S&P 500 is about 16x.
Many investors prefer purchasing stocks in firms with a lower P/E, which means that they pay less for every dollar of earnings that they get.
LOOKS Price Analysis
LooksRare price is currently trading at $0.30054, up 1.18% in the last 24 hours, with a trading volume of $34,894,237. With a market cap of $147,951,463, the LOOKS token is ranked number 183 among cryptocurrencies listed on the Coinmarketcap.
The token started the previous year strongly before the crypto winter impacted its bull run. The token plunged its value during the second quarter of the year though it made little recovery from that time.
Feature image from Shutterstock, Chart from TradingView